Anthony Fauci believes things could return to normal by the end of 2021. So far, 22 million Americans have received at least one shot, and National Institute of Allergy and Infectious Diseases Director Dr.
Right now, AMC wants to chug along until enough of the general public gets vaccinated to end the coronavirus pandemic. The company also faces operating lease liabilities (deferred rent for its locations) totaling $4.9 billion. This move could dilute investors, but it will ease AMC's debt burden, which stands at $5.8 billion as of the third quarter. In January, Silver Lake Group (a major AMC investor) converted $600 million of its convertible notes to stock at $13.51 per share. The surge in AMC stock may have bought the company even more time. He is confident that AMC can keep its doors open in 2021 because it has raised $917 million in new equity and debt capital since December. And management expressed significant doubt about AMC's ability to continue as a going concern because of its cash-burning operations.īut despite the grim wording in AMC's third-quarter SEC filing, CEO Adam Aron sounds more optimistic in more recent public statements. The company has lost roughly $3.6 billion so far this year.
BUBBLE EXPLODE FOR MAC MOVIE
Third-quarter revenue plummeted 91% to $120 million because of a collapse in movie ticket sales amid the coronavirus pandemic. But AMC's P/S ratio only tells half of the story without factoring in profit margins and top-line growth - both of which the company lacks. That multiple is not bad compared to the S&P 500 's average of 2.72. And with revenue of $2.26 billion over the trailing 12 months (as of the third-quarter report), the stock has a price-to-sales (P/S) ratio of roughly two. With a closing price of $13.23 a share on Jan. The company now boasts a valuation that is wildly out of line with its fundamentals. The trend started with GameStop and spread to other easy targets like AMC, which had a short interest of 24% as of Jan. AMC looks stunningly overvaluedĪccording to The Wall Street Journal, retail investors are coordinating on social media to drive up the price of heavily shorted stocks.
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